The Sharp Decline in Self-Consumption Worsens, Dropping 26% in 2024 and Severely Impacting the Industry

The Sharp Decline in Self-Consumption Worsens, Dropping 26% in 2024 and Severely Impacting the Industry

The adjustment in demand for photovoltaic self-consumption continues to worsen in 2024. So far this year, the decline in installed capacity has reached 26.31%. The drop in household demand observed in 2023 is now extending to commercial installations and, notably, to the industry sector, which has plummeted by 30%, according to the latest data presented this Tuesday by the Spanish Photovoltaic Union (UNEF).

According to José Donoso, General Director of UNEF, “the sector’s current situation is still driven by the aftermath of the end of an extraordinarily high electricity price period and significant subsidies derived from European funds.”

Savings, the Main Motivation

This situation, as seen in all historical trends of excessive growth, particularly impacts companies with less ability to adapt to sector adjustments. In this regard, a study conducted by SotySolar and The Cocktail Analysis highlights this vulnerability in the demand trend for such installations, whose primary incentive is savings. 60% of those considering installing self-consumption systems in their homes do so to lower their electricity bills, while 40% aim to reduce energy consumption.

In the residential market, living in an apartment block is a major deterrent, coupled with the investment cost for those with individual houses.

Only 4 Out of 10 Users Recommend It

The Cocktail study also provides a significant finding at this moment: only 4 out of 10 owners of self-consumption installations recommend them.

UNEF emphasizes that this environment does not favor the country’s goal of installing 19 GW of self-consumption as required by the National Integrated Energy and Climate Plan. They urge the government to replace the discontinued European subsidies with “much more direct and effective” fiscal incentives, according to Donoso. Additionally, they call for auctions for ground-based plants that “can compensate for a marginalist price-setting system, which does not provide the appropriate price signals for future technology,” he warns.